Still holding low on Aussie equities while seeking potential

Date: Oct 12, 2018

“Still holding low on Aussie equities while seeking potential” this is the theme right now although we’re coming to the cut. Value investment managers have been hammered most of the year and while they have not figured prominently in our portfolios for more than 8 or 9 months now I am starting to see some opportunities present. The banks have been by far the major contributor here, pushing the XJO to 5,800 levels which is a number I predicted back in May this year and as a result they represent better value at roughly a 20% discount to earlier (pre and early Royal Commission) highs.

Globally, we’ve increased exposure to emerging economies given global recovery is still very much in play. My view?……….ignore the fundamentals and analytics for the moment and consider this fact – governments and big business are notoriously late adopters of technology. In fact most of what they get excited about on any given day has usually been around for a few years already but this doesn’t detract from the fact that tech is good for business. Good for business means good for the bottom line which means good for economies in general.

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